Gulf Insurance Group - Jordan (GIG Jordan) has a record of underwriting profitability, said AM Best. In 2024, the insurer achieved a combined ratio (net/gross) of 91.9% (2023: 89.9%).
GIG Jordan has also chalked up relatively stable investment returns; the company’s net investment yield (including capital gains) was 6.6% in 2024 (2023: 4.2%). The company continued rebalancing its investment portfolio by moving away from domestic cash and deposits, in favour of fixed income securities diversified across the Middle East region.
Leading position
The company has a leading position in its domestic insurance market, with a market share of approximately 16%. However, its underwriting portfolio is concentrated heavily toward medical and motor risks on a net insurance service revenue basis, which is a common characteristic of insurers in the region.
AM Best has affirmed GIG Jordan’s Financial Strength Rating of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ (Excellent). The outlook of these credit ratings is ‘Stable’.
The ratings reflect GIG Jordan’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in lift from GIG Jordan’s parent company, Kuwait-headquartered Gulf Insurance Group (GIG).
Balance sheet
GIG Jordan’s balance sheet strength is underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). GIG Jordan’s BCAR scores are expected to remain comfortably at the strongest level, supported by good organic capital generation and measured growth.
Jordan’s insurance market is relatively small and fragmented. GIG Jordan is integrated operationally with its parent, benefitting from support in areas such as reinsurance purchasing, risk management, reserving and investment management.
As a subsidiary of GIG, GIG Jordan also benefits from good financial flexibility and a comprehensive group-wide reinsurance programme of generally excellent credit quality.